Expected messages in this thread: 50

[Boooes]

Hello everyone, I want to share a strategy that I have been using to operate breakouts in Forex.The key to this strategy is volume.I wait for the price to break a key support or resistance level and then verify if there is an increase in volume to confirm the validity of the break.The increase in volume is what gives me the sign that the break is real and not a false break.

[esSborTkgC]

This strategy seems solid, but be careful to trust only in the volume of Forex platforms, which is not always representative of the market.Sometimes it is better to combine it with other factors such as price impulse.

[CessuSesresySbes]

Do you use any specific volume indicator or simply based on the volume provided by your trading platform?

[CSoythak]

I would recommend the indicator "Volume by price" if your platform allows it.This shows you not only the total volume, but also at what price levels it accumulates more, which is key to confirm breaks.

[Teszinesx]

I like the idea of ??using the volume to confirm the breaks.Have you noticed any difference in how the different currency pairs behave in terms of volume?

[Axrunes]

Definitely, the main peers such as EUR/USD and GBP/USD tend to show more reliable volumes in the ruptures, while in exotic pairs the volume is much more erratic and difficult to use as a reference.

[Boooes]

I use the volume indicator that my trading platform provides, I don't need anything more complicated.As for currency pairs, there is a difference.The main peers, such as EUR/USD and GBP/USD, tend to have a more predictable behavior with volume.In the most exotic pairs, I have noticed that the volume can be less reliable.

[SiusCwSes]

In exotic pairs, sometimes volume can be misleading due to low liquidity.For these peers, it would be better to seek confirmation in other technical indicators together with the volume.

[xesndor1985]

Do you have any specific rule to define when a break is valid depending on the volume?

[NresnTesnTkja79]

A useful rule is that the volume must be at least 30% greater than the average of the last 10 candles.If the volume does not increase considerably, the breaking is likely to be false.